Methodology
Figures are read from sites/overtime/src/data.js, dated
. The cap is
$12,500.00, or $25,000.00 joint. The phase-out is
$100.00 per full $1,000.00 of modified AGI over
$150,000.00, or over $300,000.00 joint. Tax saved uses the 2026 brackets even
when the year selector is 2025, 2027, or 2028. The cap itself does not change across those years.
Divide by 3
When the only input is total time-and-a-half pay, the premium is that total divided by 3. On $15,000.00 of time-and-a-half pay the premium is $5,000.00. The same case is a unit test. Do not divide double time by 3. Double time is not a one-and-a-half check.
Left out on purpose
- A 50-state conformity table. A row ships only when it has a primary source in the data file.
- The W-2 Box 12 code TT page, until the IRS fact-sheet wording on a missing code is checked against the fact sheet.
- California daily overtime, hospital 8-and-80 schedules, and section 7(k) hour thresholds.
- State income tax on the overtime wages.
Updated .
Sources
- 26 U.S.C. § 225: qualified overtime compensation — premium only, $12,500 / $25,000 joint cap, $100 phase-out per $1,000 of MAGI, joint-return rule, 2025–2028
- 26 U.S.C. § 224: qualified tips — $25,000 cap and the same MAGI phase-out
- IRS: Treasury, IRS provide guidance for individuals who received tips or overtime during tax year 2025 (FLSA premium, divide-by-3 example)
- IRS Notice 2025-69: qualified tips and qualified overtime compensation
- IRS FAQ: deduction for qualified overtime compensation
- IRS Form 1040-ES (2026): 2026 brackets, standard deduction, and the overtime and tips deduction reminders
- 29 U.S.C. § 207: FLSA overtime after 40 hours in a workweek, at one and one-half times the regular rate